2174219 - Connection failed. Database server not found error occurs when a client connects to a SQL Anywhere server

The server is running perfectly fine but clients connect returns the following error:

Connection failed.
[Sybase][ODBC Driver][SQL Anywhere]Database server not found

If you have a LogFile parameter enabled in connection string (-c "uid=dba;pwd=sql;server=demo;LogFile=c:\log\client.log"), you will see the following in the log file:

Tue Mar 24 2015 15:08:35
15:08:35 Attempting to connect using:
UID=dba;PWD=sql;ServerName=demo;CON=some_connection_name;LOG=c:\log\client.log;ASTART=NO;Host=***
15:08:35 Attempting to connect to a running server...
15:08:35 Attempting TCPIP connection (no sasrv.ini cached address)
15:08:35 Looking for server with name somename
15:08:35 Trying to find server at address ***.***.***.155:2638
15:08:40 TCP/IP link, function connect(), error code 10060
15:08:40 A HOST value was specified, skipping LDAP check
15:08:40 Sending broadcast to find server
15:08:40 Using broadcast address of: ***.***.***.155:2638
15:08:41 Resending
15:08:42 Resending
15:08:43 Resending
15:08:44 Resending
15:08:45     Server not found (no reply received)
15:08:45 Failed to connect over TCPIP
15:08:45 Removing failed address from sasrv.ini cache
15:08:45 Not attempting to autostart server
15:08:45 Cannot connect to server

• Any supported SAP SQL Anywhere
• Any supported Sybase SQL Anywhere
• Any supported OS

anyhwere, port, default, open, firewall, policy, TCP, block, dbping, telnet, ServerPort , KBA , BC-SYB-SQA , SQL Anywhere (on premise, on demand) , Problem